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Delta and Northwest Eliminate
Grace Period on Missed Flights

By

Martha Brannigan and

Susan Carey Staff Reporters of The Wall Street Journal

Updated Sept. 6, 2002 12:01 a.m. ET

Delta Air Lines
and
Northwest Airlines
tightened restrictions on nonrefundable tickets by eliminating the one-year grace period on missed flights, and
UAL Corp.'s
United Airlines Thursday night was expected to do the same. Such moves increase the odds the unpopular step initiated last week by
US Airways Group
has some staying power.

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AMR Corp.'s
American Airlines and
Continental Airlines
had earlier followed US Airways' move on nonrefundable fares, despite angry objections from some travelers.

Under the change, effective Oct. 1, passengers on Delta, Northwest, American, Continental and US Airways can still change itineraries on nonrefundable tickets before a flight departs, with a $100 change fee and restrictions. However, they must book a specific new flight, instead of carrying a credit for up to a year. No-shows -- those who don't arrange to rebook a nonrefundable ticket before departure -- will lose the full value of their tickets, typically discounted ones arranged up to three weeks in advance and requiring a Saturday-night stay. Delta said the changes are intended to "more closely align its ticketing policies to the value customers realize as they purchase different fares."

The rule changes, coming as the industry suffers staggering losses, are aimed at generating extra revenue and making the cheapest tickets less attractive in hope of pushing business travelers toward higher-priced, less-restrictive tickets.

Even as Delta unveiled the rule changes Thursday, its chief executive, Leo F. Mullin, was in Washington, D.C., to urge congressmen to shift more of the costs of increased aviation security to the public from the airline industry. Still, among frequent fliers, the industry's latest efforts to raise revenue are intensifying anger and alienation.

"I'm just about fed up," said Steve Landes, a frequent flier who commutes between Florida and New York and writes a newsletter for the South Florida Airline Commuters Association. "You don't attack your best customers, and that's what they're doing."

The carriers have implemented other fare changes. Delta -- mirroring American and Continental -- said it will begin charging a $100 fee in January for passengers on most restricted tickets to stand by for a different flight on the same day of ticketed travel. Such same-day switches used to be free. Under its recent changes, US Air no longer allows such changes at all.

For its part, Northwest will continue to let passengers stand by for another flight on the same day without charge, but for a fee of $100, it will confirm travel on another flight the same day, subject to seat availability in the traveler's class of fare. Travelers changing the date of travel must pay the $100 change fee and any difference in the fare for the new itinerary.

"We believe it is reasonable that in exchange for discounted fares we ask customers to advise us in advance that they do not intend to travel," said a Northwest spokesman, adding that the carrier's discounted BizFlex business tickets are exempt. "We can then in turn sell that seat and meet the needs of another customer who might wish to travel on that very flight."

So far, no carrier has followed another change initiated by US Airways that has spurred ire: US Airways said last week that nonrefundable tickets would no longer generate credit toward elite-level status in its frequent-flier program.

Delta said it also increased the fee for a paper ticket to $20 from $10, "to encourage the use of electronic ticketing."

Northwest widened its $25 surcharge on domestic paper tickets to cover all fare types and all purchase outlets. Previously, the charge applied only to paper tickets purchased through Northwest reservations or city ticket offices, and only for leisure fares.